BASF in Brazil BASF to Explore New Investment in Brazil

Editor: Marion Henig

BASF is exploring opportunities for a new investment in Brazil. Projects under consideration include the production of acrylic acid, butyl acrylate and superabsorbent polymers (SAP). The company is conducting a feasibility study to evaluate the technical, commercial and economic viability of operating a world-scale complex in Brazil.

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The majer production site of BASF in South America is located in Guaratinguetá, Brazil. (Picture: BASF)
The majer production site of BASF in South America is located in Guaratinguetá, Brazil. (Picture: BASF)

Brazil – Decision on the plants to be built as well as on their capacities will be taken after the completion of the feasibility study, which is planned to be concluded in 2011. With this investment BASF is targeting at the growing South American market with special focus on Brazil.

“BASF is currently producing butylacrylate in Brazil, but at the moment there are no production plants for acrylic acid and superabsorbent polymers (SAP) in South America at all – all product is imported,” said Dr. Alfred Hackenberger, President of BASF for South America. “With these new investments we will be the first company to produce acrylic acid and SAP in South America, which will enable us to better serve our customers, further foster our position in these markets and open up additional opportunities for our businesses in South America,“ concludes Hackenberger.

Memorandum of Understanding with Braskem S.A.

To secure the competitiveness of the investment under consideration, BASF and Braskem S.A., a major chemical company in Brazil, have signed a Memorandum of Understanding (MoU). This MoU defines the long-term supply conditions for propylene, which is used as feedstock for the acrylic acid production, as well as the supply of utilities by Braskem to BASF.

Acrylic acid is an important precursor in the value chain of super­absorbents, the active component of baby diapers and other hygienic products. Acrylic esters, the most important derivatives of acrylic acid, are used to produce architectural coatings, adhesive raw materials and construction chemicals.

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